Top 3 Reasons You’re Still In Debt

Top 3 reasons you're still in debt


Free yourself and your cash by breaking these bad money habits.

Trying to escape the debt cycle can feel like a never ending battle. Having enough cash just to get by can be tough – let alone cover off your debts, especially if you’re unemployed or trying to get by on a low income or on benefits. But believe it or not, it can be done. And if you need help, at City Finance we understand and are here to help – pop in and visit our friendly staff at your local branch for a chat and some helpful advice.

Here’s our top 3 reasons why so many of us continue to deal with debt.

  1. You spend more than you have

Yep, we know it sounds really obvious. But almost all of us somehow manage to spend more cash than we have coming in each week. And that obviously leaves you without any cash to repay your debts.

  • Break this habit by setting – and sticking to – a budget.
  • Try this simple calculation: take a look at how much money you have coming in each week (or month, if you prefer). Then divide it by the number of days in the week or month. That’s how much cash you have to spend each day.
  • Factor in your rent, groceries, transport, food, drink, entertainment and so on – and it’s scary how little you have to play with. But by being honest with yourself and sticking within your limits, you’ll be able to get ahead in no time.
  1. You focus on what you want, instead of what you already have

Every day we’re bombarded by images and ads for fast food, events and shopping, and coverage of the celebs and their fancy clothes and cars.

  • It’s little wonder that we’re always wanting the latest fads, gadgets and trends. But do you really need them? Are they making you happier, or just digging you deeper into debt?
  • There’s nothing wrong with treating yourself a special little something new every now and then. But try to earn it first by making some progress on paying off your debts before you go spending more cash on non-essential items.
  • Stop falling into the trap of spending your cash, and focus on the things you already have.
  • If you need some inspiration, try reading this great article on how buying stuff doesn’t solve your problems.

3. You’re not clear on your expenses, their amounts and due dates

Sure, you might pay your rent and phone bill, along with all the others, but you don’t really ever sit down and take a look at what it all adds up to, and when it all falls due each month.

  • That $29 phone bill mightn’t seem like much, but when you add it to the list of all your other monthly expenses it can quickly get out of control.
  • Set up direct debits for recurring expenses and bills, so that they’re always paid on time and don’t contribute to building more debt.
  • Use your calendar or reminder alerts in your phone for regular due date of these payments, so you feel in charge of your expenses and understanding how much you’re spending on each. Apps like Pocketbook can be a big help too.
  • Try our handy guide to making your money go further.

If you’re serious about getting rid of your debt, you need to be proactive. You need a plan so Set yourself a budget today.

And remember – even if you’re unemployed, or trying to get by on a low income or on benefits, you can break the debt cycle. See the friendly staff at your local City Finance branch for a chat and some helpful advice.